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FG, Wigwe varsity advance talks on AI, agric innovation
punchng47d ago

FG, Wigwe varsity advance talks on AI, agric innovation

Nigeria’s FG and Wigwe University are collaborating on AI and agric innovation, aiming to develop local AI systems and boost Nigeria’s technological futureRead More: https://punchng.com/fg-wigwe-varsity-advance-talks-on-ai-agric-innovation/

#CRYPTO
Access ARM Pensions pushes PPP, FCY fund
punchng47d ago

Access ARM Pensions pushes PPP, FCY fund

Access ARM Pensions expands retirement savings with its Personal Pension Plan (PPP) and the new dollar-denominated RSA Fund VII for Nigerians.Read More: https://punchng.com/access-arm-pensions-pushes-ppp-fcy-fund/

#ECONOMY
PARTLY FACETIOUS: All roads in the Blue Area are shut
brecorder47d ago

PARTLY FACETIOUS: All roads in the Blue Area are shut

“So if I give you two hats then how will you decide which one to wear when?”“I don’t favour hats – umbrellas or head scarfs or just a newspaper to ward off rain....”“But if I do give you two hats which one will you wear when?”“I just told you...OK, OK I will humour you, if it’s a sunny day then I will wear a sun hat, if it’s a rainy day then there are waterproof hats and...”“And what if it’s raining and neither of the two hats is waterproof?”“Good Lord! I will either not go out or take an umbrella or...”“I wasn’t aware you are that literal!”“Sorry?”“Well our cabinet members traditionally like to have more than one hat – I guess the King of Hats accumulation is Ishaq Dar.”“Oh and who is the Prince?”“Our Prime Minister favours hats as well though I have never seen him wear a winter hat, you know the knitted variety that...”“That is a hairstyle spoiler and...”“You are being facetious! And would you please stop this inane conversation, there is so much not right in the country – the economy is.....”“Before you say something that would show a sense of hopelessness on your part, a very un-Islamic sentiment, let me tell you who I was actually referring to. It is not the King of Hats, he has way more than two, no let me give you the background – the parliamentarians of the party led by the Man Who Must Remain Nameless and Faceless have remained in the national assembly building for the past three days, whose keys are now with the police reportedly...”“I hear the toilet’s window is open and...”“The Leader of the Opposition is rather spry for his age, but I don’t think he can actually jump out.”“Don’t be facetious anyway there were many who gathered outside the assembly building because the doors were locked, then many gathered inside Khyber Pakhtunkhwa House because they weren’t allowed to proceed to the assembly building — all roads in the Blue Area are shut which means that the bureaucrats can’t easily get to their offices and the demand seems very reasonable: let us have a family member or a doctor present who enjoys the confidence of the party and...”“So where do the hats come in?”“This situation is creating havoc in the federal capital and the Interior Minister is currently wearing his Chairman Pakistan Cricket Board hat and...”“Hey, he had to support the team.”“The team lost badly.”“Think of it as glass half full – if he hadn’t been there the team would have lost by more than 61 runs – I reckon around 150 or...”“Don’t be facetious.”Copyright Business Recorder, 2026

#ECONOMY
Tariff rationalised to remove import distortions: Kayani
brecorder47d ago

Tariff rationalised to remove import distortions: Kayani

ISLAMABAD: Minister of State for Finance Bilal Azhar Kayani has said that import tariffs have been rationalised under the five-year plan to remove distortions on the imports of inputs, raw materials, and intermediate goods.He was addressing to a high-level policy dialogue that brought together leading policymakers, economists and business leaders to deliberate on Pakistan’s economic direction ahead of the forthcoming national budget, organised by the American Business Forum (ABF) in collaboration with LUMS.Kayani defended the government’s reform trajectory, pointing to the National Tariff Policy as a major structural initiative. He said tariffs are being rationalised over a five-year horizon to reduce distortions, particularly on raw materials and intermediate goods, while strengthening the National Tariff Commission.READ MORE: Pakistan’s trade deficit rises 28% to $22bn in July-JanuaryHe also underscored ongoing privatisation efforts and digital monitoring measures aimed at broadening the tax base and improving compliance in key sectors. Kayani said the government is committed to reducing its footprint in economy and creating an enabling environment for private investment, particularly in export-oriented and technology-driven sectors.He acknowledged the need for greater coherence in long-term economic planning and stressed that sustained dialogue with business and academia remains central to policy formulation.In his keynote address, Dr Stefan Dercon, development economist and Professor of Economic Policy at the University of Oxford acknowledged recent macroeconomic stabilisation, noting that inflation has declined and foreign exchange reserves have improved compared to the crisis period of early 2023. However, he cautioned that stabilisation alone is insufficient without structural reform.He warned that under the current economic structure, growth beyond four per cent risks triggering external imbalances and renewed reliance on International Monetary Fund (IMF) programmes. He stressed that improving the trade balance, ensuring greater policy certainty and consistency, and simplifying regulatory processes would be essential to sustain higher growth.Dr Dercon highlighted persistently low exports, around 10 per cent of GDP, and weak investment levels, with public investment at roughly four per cent of GDP and private investment below 10 per cent.Productivity growth over the past three decades, he said, has lagged behind regional peers. He argued that successful low-income economies since the 1990s achieved rapid growth by engaging more deeply with global markets, reducing regulatory burdens, strengthening property rights, and aligning industrial policy with export competitiveness.The session concluded with a consensus that while macroeconomic stability provides breathing space, durable growth will require difficult but necessary structural reforms, including trade liberalisation, improved regulatory quality, export competitiveness, institutional strengthening, and greater policy continuity to avoid repeating past cycles of boom and external crisis.Copyright Business Recorder, 2026

#ECONOMY
BMP says concerned at deteriorating financial position of SOEs
brecorder47d ago

BMP says concerned at deteriorating financial position of SOEs

LAHORE: The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel (BMP) has expressed grave concern over the deteriorating financial position of State-Owned Entities (SOEs), stating that the absorption of Rs2.1 trillion during FY25 - nearly 16 percent of the Rs12.97 trillion tax revenue collected by the federal government - is a stark indicator of deep-rooted structural weaknesses in the public sector.FPCCI President and Chairman of the Businessmen Panel, Mian Anjum Nisar, said the latest financial data reveals an unsustainable fiscal pattern that is steadily squeezing productive sectors of the economy.He observed that the reported net adjusted loss of Rs122.9 billion in FY25, compared with Rs30.6 billion in the preceding year, reflects a worrying decline in overall financial performance. Aggregate profits have shrunk while liabilities continue to mount, pushing the total debt portfolio of SOEs beyond Rs9.5 trillion. According to him, such figures clearly demonstrate that repeated equity injections and sovereign guarantees have failed to address the structural inefficiencies that plague these enterprises.Mian Anjum Nisar particularly highlighted the power sector as the most pressing concern, noting that despite substantial capital injections aimed at containing circular debt, liabilities have continued to accumulate. He said the persistent build-up of debts; unfunded pension obligations and weak financial planning mechanisms indicate a governance failure rather than a temporary liquidity crisis. He added that business plans of various entities often lack rigorous financial modelling, cost-benefit analysis and measurable performance benchmarks, resulting in misallocation of scarce public resources.He pointed out that the continued reliance on sovereign guarantees and government-backed loans distorts the competitive landscape and discourages operational efficiency. When entities operate with the assurance of state support regardless of performance, he said, there is little incentive for cost optimization, innovation or strategic restructuring. This approach not only undermines fiscal discipline but also sends a negative signal to private investors who operate under strict market constraints.The BMP chairman stressed that at a time when the formal business sector is burdened with high taxation, elevated energy tariffs and limited credit availability, it is inequitable for a substantial portion of public revenue to be redirected toward sustaining loss-making institutions. He maintained that every rupee used to plug recurring SOE losses reduces the government’s capacity to invest in infrastructure, education, healthcare and industrial modernization.He suggested that fiscal space created through meaningful SOE reforms should be redirected toward growth-enhancing initiatives. Reducing the tax burden on documented businesses, lowering industrial electricity tariffs, promoting export diversification and supporting small and medium enterprises would stimulate economic activity and job creation. He noted that empowering efficient private enterprises would generate higher returns for the economy than perpetuating a cycle of bailouts.The BMP chief said that Pakistan’s economic stability hinges on restoring fiscal credibility and enforcing strict accountability within state institutions. Bold decisions, transparent reforms and unwavering commitment to efficiency are essential to protect taxpayers’ money and place the country on a path of sustainable, investment-led growth.Copyright Business Recorder, 2026

#ECONOMY
Powerless growth
brecorder47d ago

Powerless growth

For more than a century, one of the clearest signals of economic progress has remained constant: when economies grow, electricity demand rises with them. Factories run longer, cities brighten, machines multiply, and productivity expands. Sustained growth without rising electricity consumption is historically rare — almost unheard of.Yet in Pakistan, that relationship is weakening. Over the past four years, economic output has inched forward, but grid electricity demand has stagnated or declined. The country is experiencing what may be called powerless growth — expansion without corresponding growth in grid power use. In a world entering what the International Energy Agency calls the ‘Age of Electricity’, such divergence is not merely unusual; it is a structural warning.Electricity is the operating system of modern economies. Every additional unit of industrial production, digital processing, mechanised agriculture, or automated manufacturing requires more power. That is why across most countries electricity consumption and GDP move together. As economies industrialise, power demand accelerates. The relationship is so reliable that electricity growth is often treated as a proxy for real economic momentum. Persistent divergence, therefore, signals stress beneath the surface — and Pakistan’s recent trajectory fits that rare pattern.Despite modest positive growth, grid demand has shrunk. This suggests the formal power system is no longer functioning as the primary engine of production. Businesses and households are adjusting behaviour in response to constraints: firms scale back output, delay expansion, shift to captive generation, or move activity off-grid; households cut usage or seek alternatives. Economic activity continues — but increasingly outside the national system.At the centre of this paradox lies a pricing problem. Industrial electricity tariffs in Pakistan have climbed to roughly 15-17 US cents per kWh, higher than many competing economies and even above average tariffs in some advanced markets. These elevated prices are not driven solely by generation costs but by structural distortions embedded in the power sector: fixed capacity payments approaching Rs 2 trillion annually, circular debt, high system losses, cross-subsidies, exchange-rate-linked fuel costs, and substantial indirect taxes built into electricity bills.Because many of these costs are fixed, they must be recovered regardless of how much electricity is consumed. When demand falls, tariffs must rise to recover the same total amount. But higher tariffs suppress demand further, increase incentives for theft or self-generation, and shrink the paying consumer base. The result is a self-reinforcing cycle economists describe as a utility death spiral. In effect, the system prices itself out of relevance.Industry feels this pressure first. Electricity is often the largest operating cost after raw materials and labour. When tariffs become uncompetitive, firms respond predictably: they reduce production, postpone investment, shift to captive power, or relocate. Each response reduces demand on the grid, worsening the cycle.Faced with expensive and unreliable electricity, consumers have adapted. Pakistan has witnessed one of the fastest expansions of distributed solar adoption anywhere. More than 20 gigawatts of solar panels were imported in 2024 alone. Estimates suggest total distributed solar capacity now stands between roughly 15 and 18 gigawatts, much of it installed behind the meter. Around 6 gigawatts operates under net-metering arrangements, while the remainder functions off-grid or as captive supply.This surge is sometimes portrayed as a threat to the power sector. In reality, it is a rational response to price signals. When a service becomes too costly or unreliable, users find alternatives. Solar provides one — especially in a country with abundant sunlight and sharply declining global panel prices. Far from undermining the economy, distributed solar has acted as a shock absorber. It has helped factories continue operating, farmers irrigate crops, and small businesses manage costs. It has reduced pressure on foreign exchange by lowering fuel imports and mobilised private investment in energy infrastructure at a scale the public sector could not match. Solar did not create Pakistan’s electricity paradox; it has merely concealed it.This creates a policy dilemma. Governments must balance three objectives simultaneously: financial sustainability of the grid, fairness among consumers, and continued investment in clean energy. If solar users pay too little for grid services, other consumers bear a disproportionate burden. But if incentives are cut abruptly, investment collapses and confidence erodes. Heavy-handed restrictions risk pushing more users off grid, shrinking demand further and raising system costs for those who remain. The problem cannot be solved by driving customers away.A practical middle path lies in a balanced net-billing framework that preserves incentives while ensuring fair cost recovery. Such an approach would link export prices to market conditions, introduce time-of-use tariffs, apply transparent grid-access charges, and adjust policies gradually rather than abruptly. Predictability is as important as price: investors can adapt to reasonable returns, but not to sudden rule changes. A moderate export price that ensures viable returns can sustain private investment in clean energy while protecting grid finances.Pakistan’s electricity problem is often described as a shortage. In reality, it is largely a utilisation problem. Installed capacity exists, but demand is too low to spread fixed costs efficiently. High tariffs suppress consumption; suppressed consumption keeps tariffs high. Breaking this cycle requires expanding demand, not restricting it.This is where policy courage is required. A deliberate reduction in electricity tariffs — even if it requires temporary fiscal support or risk-sharing by the state — could stimulate consumption, revive industrial output, and increase overall revenue collection. Higher electricity usage would improve recovery of fixed capacity payments by spreading them across more units, while stronger economic activity would expand the tax base. In network industries, scale improves viability; lower prices can generate higher total revenue if they unlock sufficient demand.The real reform, therefore, is not choosing between grid power and distributed energy. It is integrating both into a coherent system. Modern electricity markets combine centralised generation, decentralised sources, storage, and flexible pricing. The future is hybrid, not binary.Electricity is the bloodstream of modern economies. Countries that ensure abundant, affordable power industrialise faster, attract investment, and sustain productivity gains. Those that fail to do so struggle to compete. Pakistan’s powerless growth is thus more than an energy anomaly; it is a macroeconomic constraint. If the gap between economic activity and electricity demand persists, it signals that the formal energy system is no longer fully supporting growth.Pakistan now stands at a crossroads. One path attempts to sustain the existing system through higher tariffs and restrictions. The other pursues structural reform — lowering costs, expanding demand, and integrating distributed energy into the grid. The first may stabilise finances temporarily but risks long-term stagnation. The second requires policy discipline and calculated risk but offers a route to durable growth.Affordable electricity is not simply an energy objective. It is economic strategy. In the ‘Age of Electricity’, nations that align power systems with growth prosper; those that fail to do so fall behind. Pakistan’s problem is not that it lacks electricity. It is that too much of its electricity is too expensive to use.Until that changes, growth will remain — quite literally — powerless.Copyright Business Recorder, 2026

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The budgetary outcome
brecorder47d ago

The budgetary outcome

The outcome magnitudes of the fiscal operations by the federal and the provincial governments have been released recently. There is need for an early and in-depth review of these magnitudes as the IMF Third Review is due shortly. One of the key components of the review is the fiscal performance in the first six months of 2025-26.The targets for the year are a 19 percent growth rate in FBR tax revenues. With the projected nominal GDP growth rate of 10.8 percent, this implies a significant increase in the federal tax-to-GDP ratio from 10.3 percent of the GDP in 2024-25 to 11.1 percent of the GDP in 2025-26. Provincial tax revenues are expected to increase by 17.5 percent and the petroleum levy by over 20 percent.Federal current expenditure has been budgeted to rise by only 4 percent. This low growth will be achieved by 7.5 percent decrease in the outlay on debt servicing, due to the fall in interest rates. The growth rate in provincial current expenditure is projected at 12.8 percent.Development expenditure is also to be contained with an increase of only 3.4 percent. The level of provincial development spending is actually expected to come down by 4.5 percent.Overall, the expectations in the IMF Programme are that Pakistan will achieve substantial stabilization of public finances, with the budget deficit to come down significantly from 5.4 percent of the in 2024-25 to only 4 percent of the GDP in 2025-26. As highlighted above, this is to be achieved with a big increase in the tax revenues and strong containment of both current and development expenditures.Based on the annual projections, targets have been set for various public finances magnitudes in the first six months of 2025-26.The key targets are as follows:(i) FBR revenues to reach Rs 6490 billion, with a growth rate of 15.4 percent.(ii) Provincial tax revenues to rise to Rs 488 billion, with a growth rate of 10.4 percent.(iii) Overall primary surplus of Rs 3,194 billion, compared the level in the first six months of 2024-25 of Rs3603 billion, a reduction of 11.4 percent.(iv) Cumulative floor on new tax returns of 500,000.(v) Floor on income tax revenues from retailers of Rs 366 billion by the end of December 2025.(vi) Ceiling on net accumulation of tax refund arrears to only Rs 45 billion.The first target evaluated is of FBR revenues. During the period, June to December 2025, the actual collection is reported at Rs 6,161 billion, with a growth rate of 9.5 percent. Therefore, the shortfall is Rs 329 billion. The consequence is that Rs 7970 billion will have to be collected in the next six months to achieve the annual target. This will require an extreme growth rate of 30 percent, as compared to the growth rate of 9.5 percent in the first half of 2025-26.Turning to provincial tax revenues, there’s the good news that the actual collection in the first six months at Rs 568 billion has exceeded the target by Rs 80 billion. With a high growth rate of 28.5 percent, the annual target is likely to be achieved.The next target is effectively the bottom line, with the focus on the overall primary surplus. It is expected to be sizeable and reach Rs 3,194 billion by the end of December. The actual level achieved is significantly higher by over 25 percent at Rs 4,108 billion.However, the issue relates to the treatment of the large SBP surplus profits transferred to Islamabad. The Central Bank has adopted the policy of making one large lump-sum transfer in the first quarter of the year. This year it stands at Rs 2,428 billion.The IMF calculation of the primary deficit in the first six months is probably not based on the full lump-sum transfer in these months. There are two possible paths adopted. The first is to take half the SBP profits for the first six months. As such, the primary surplus is lower by Rs 1,214 billion. Consequently, the actual primary surplus is down to Rs 2,894 billion. This is lower by Rs 300 billion with respect to the Programme target.The second option is that the IMF has agreed to only 1 percent of the GDP to be shown above line as SBP profits. Consequently, these profits have to be taken at Rs 1,250 billion approximately. This methodology reduces the actual primary surplus to Rs2,930 billion again significantly less than the target.There is need also to look at the expenditure magnitudes in the first six months. Here there appears to have been significant success in containing current expenditure in the first six months by over 5 percent. This is due largely to reduction in debt servicing by over 30 percent, due to the big fall earlier in interest rates.Development spending has shown a big increase due to the fiscal space created. It has increased by 29 percent. This is a positive development from the viewpoint of supporting the growth process in the country.The other good news is that the provincial governments have generated large cash surpluses. The combined surplus was Rs 775 billion in the first six months of 2024-25. It has increased to Rs 1,179 billion in the first six months of 2025-26, implying a big increase of 52.1 percent. The biggest increase of 82.5 percent has been shown by the provincial government of Punjab. However, the target is Rs 1,500 billion for 2025-26.There is one more worrying area in the public finances of the country. There is a net outflow of external financing of Rs 34 billion. This highlights the difficulty the federal government is having in accessing loans from multilateral institutions, international commercial banks and by flotation of bonds.The overall assessment is that Pakistan has performed relatively well in meeting the public finance targets, with the solitary exception of the shortfall in FBR revenues. There will continue to be a need for accelerating the process of federal revenue generation, exercising economy generally in current expenditure and for continuation by the provincial governments of large cash surpluses.Copyright Business Recorder, 2026

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Calls for global guidelines for safer AI use in medicine
scimex47d ago

Calls for global guidelines for safer AI use in medicine

A review led by Adelaide University researchers has found there's a lack of clear guidelines around the early testing of AI tools in health clinics, during a process known as silent trials. The global scoping review looked at this early phase of testing and revealed huge variations in the way the trials are being conducted and the measures used to assess the effectiveness of the tools.

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New ministerial team ‘to deliver on accountability, performance’
barbadostoday47d ago

New ministerial team ‘to deliver on accountability, performance’

Prime Minister Mia Mottley robustly defended her new 23-member Cabinet, insisting its size is a deliberate design to boost government delivery, accountability, and performance. Speaking at Monday’s swearing-in ceremony at...The post New ministerial team ‘to deliver on accountability, performance’ appeared first on Barbados Today.

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